Economics Essay

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The French belief in European integration was in fact, very ironically, to prevent West Germany from becoming too independent. This is because after the Franco-Prussian war in 1870 and the two world wars, in which all three the aggressor was German, the French had a great distrust of Germany. Therefore for these two nations political reasons were at the fore. However economic reasons were also very important. These were seen as a way to increase the strength of a country, resulting in an increased ability to protect itself. France wished to gain economic benefits at West Germanys expense. Britain was never truly interested in any European integration as it did not see itself as an integral part of Europe.
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The Credit market is termed to be a market that equilibrates the surplus and deficit economic units of funds, through the provision of either Loan or Equity finance. Parties involved are:
• Entrepreneurs
• Banks (Financial Intermediaries)
• Investors (suppliers of capital)
In order to outline the credit market equilibrium in the general context of this study it is essential to understand the features within its environment and how the interplay of these features drive the market to equilibrium.
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Monetarists favour cutting welfare payments and making the criteria for receiving the, more rigorous. They believe that this would reduce voluntary unemployment by, as with a cut in income tax, increasing the gap between paid employment and unemployment benefit and ensuring that those who do receive benefits are genuinely unable to find work. It is thought that if employment benefit is at a relatively low level the unemployed will seek work more actively and be less inclined to turn down offers of low paid employment. Unfortunately the last conservative government did not stay in power long enough to undo the damage done by the previous government in this respect as their policies had developed a % of the population completely dependant on government handouts and quite willing to sit back and do nothing . This had a plus side in keeping inflation down...
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